BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 414|
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VETO
Bill No: SB 414
Author: Correa (D)
Amended: 5/19/10
Vote: 21
SENATE PUBLIC EMP. & RET. COMMITTEE : 4-2, 1/11/10
AYES: Correa, Corbett, Ducheny, Liu
NOES: Ashburn, Cox
SENATE FLOOR : 23-13, 1/25/10
AYES: Calderon, Cedillo, Corbett, Correa, DeSaulnier,
Ducheny, Hancock, Kehoe, Leno, Liu, Lowenthal, Negrete
McLeod, Oropeza, Padilla, Pavley, Price, Romero,
Simitian, Steinberg, Wiggins, Wolk, Wright, Yee
NOES: Aanestad, Ashburn, Cogdill, Cox, Denham, Dutton,
Harman, Hollingsworth, Huff, Runner, Strickland, Walters,
Wyland
NO VOTE RECORDED: Alquist, Florez, Maldonado, Vacancy
ASSEMBLY FLOOR : 53-20, 8/9/10 - See last page for vote
SENATE FLOOR : 23-11, 8/19/10
AYES: Alquist, Calderon, Cedillo, Corbett, Correa,
DeSaulnier, Ducheny, Florez, Hancock, Kehoe, Leno, Liu,
Lowenthal, Negrete McLeod, Padilla, Pavley, Price,
Romero, Simitian, Steinberg, Wolk, Wright, Yee
NOES: Aanestad, Ashburn, Cogdill, Denham, Dutton,
Emmerson, Harman, Hollingsworth, Huff, Runner, Wyland
NO VOTE RECORDED: Oropeza, Strickland, Walters, Wiggins,
Vacancy, Vacancy
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SUBJECT : County employee retirement boards
SOURCE : California Professional Firefighters
California Retired County Employees Association
DIGEST : This bill makes various changes to the process
for filling vacancies on boards of retirement and boards of
investment in counties operating retirement systems under
the County Employees' Retirement Law of 1937.
Assembly Amendments broaden the scope of duties for the
"alternate 7th member" and make minor technical changes.
ANALYSIS : Existing law, the County Employees' Retirement
Law of 1937 ('37 Act), sets forth the composition of the
nine-member board of retirement for any '37 Act county
retirement system, as follows:
1. The county treasurer.
2. Two general (non-safety) members elected by the general
members of the system (2nd and 3rd members).
3. Four members who are qualified electors not in any way
connected with county government, except one may be a
county supervisor, appointed by the board of supervisors
(4th, 5th, 6th and 9th members).
4. One safety member elected by the safety members of the
system (7th member).
5. One retired member elected by the retired members of the
system (8th member).
Existing law provides for an alternate member who is the
candidate for the 7th member from the group of safety
members that is not represented by the board member who
received the highest number of votes for all candidates in
that group. Unless prohibited by the board, the alternate
member may participate in the deliberations at periodic
meetings of the county board of retirement and, unless
prohibited by a resolution or regulation, has the same
rights, privileges, responsibilities, and access to closed
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sessions as other specified board members.
This bill names the alternate member who is the candidate
for the 7th member, as specified, as the "alternate 7th
member".
Existing law prescribes the manner of appointing an
alternate retired member for the 8th member of the board of
retirement. If there is a vacancy with respect to the 8th
member the alternate retired member is required to fill the
vacancy until a successor qualifies. The alternate retired
member is authorized to hold positions on committees of the
board independent of the 8th member and to participate in
the deliberations of the board or its committees regardless
of whether the 8th member is present, unless prohibited by
the board.
This bill specifies that if there is a vacancy with respect
to the 8th member, the alternate retired member will fill
the vacancy for the remainder of the 8th member's term in
office.
This bill also revokes the authority of a board of
retirement to prohibit, by resolution or regulation, an
alternate member's ability to participate in the
deliberations of the board or its committees.
This bill authorizes the alternate 7th member to
participate in the deliberations of the board on any of its
committees top which the alternate 7th member has been
appointed regardless of whether the 2nd, 3rd, 7th, or 8th
member is present.
Existing law provides that if a vacancy on the board occurs
for any cause or on the expiration of the term of office of
any member, a successor shall be chosen in the same manner
as was his predecessor, except that if an election to fill
a vacancy for the 2nd, 3rd, 7th or 8th member has been
called and only one member has been duly nominated, the
board of supervisors shall order that no election be held
and shall direct the clerk to cast a unanimous ballot in
favor of such nominated member.
This bill revises and recasts provisions governing the
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process for filling vacancies on both the boards of
retirement and boards of investment to provide the
following:
1.For vacancies in the 5th, 6th, 7th, or 9th member
positions, the board of supervisors is required to
appoint a replacement for the duration of the current
term forthwith. For vacancies in the 7th member
position, candidates will be a safety member from a group
which is not represented by an incumbent alternate
seventh member. The successful candidate will serve for
the duration of the current term.
2.For vacancies in the 2nd, 3rd, 4th, or 8th (if there is
no alternate retired member), the board is required to
cause an election to be held within 90 days of the date
the vacancy occurs. These vacancies will be filled for
the remainder of the current term unless only six months
or less remain of that term, in which case the successful
candidate will serve for the remainder of the term and
for the succeeding term.
3.For vacancies with respect to the alternate retired
member position, the board of retirement is required to
appoint a replacement alternate member, in the same
manner as prescribed for the initial appointment of an
alternate retired member.
4.If an election has been called due to the expiration of
the term of office of any member or to fill a vacancy for
the 2nd, 3rd, 7th, 8th or alternate 7th member of a board
of retirement, or for the 2nd, 3rd, 4th or 8th member
positions on a board of investment, and only one
candidate has been duly nominated, the board of
supervisors shall order that no election be held and
shall direct the clerk to cast a unanimous ballot in
favor of such nominated candidate.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 8/10/10)
California Retired County Employees Association (co-source)
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California Professional Firefighters (co-source)
ARGUMENTS IN SUPPORT : According to the author's office,
nothing in statute requires the board of supervisors or
county board of retirement, as applicable, to expeditiously
fill vacancies on the board of retirement. This can affect
the board's ability to obtain a quorum for official
meetings. It can also deny the various stakeholders of the
retirement system proper representation on the board. The
sponsors also note that alternate board members have the
same fiduciary responsibility and liability as regular
board members. Therefore, it is necessary that no
potential limitation to their activities exist. In order
to carry out their responsibilities they must be involved
in, and have access to, every aspect of the board's
business so that when called upon to vote, they possess all
of the same information as regular board members.
GOVERNOR'S VETO MESSAGE:
"I am returning Senate Bill 414 without my signature.
Among other things, this bill prohibits a county
retirement board from limiting the role of an
alternate member's participation in board meetings
and committees. It also mandates that an election to
fill board vacancies be held at the earliest possible
date. Both of these provisions are unnecessarily
limiting of the flexibility of these local entities.
For these reasons, I am unable to sign this bill."
ASSEMBLY FLOOR :
AYES: Ammiano, Arambula, Bass, Beall, Tom Berryhill,
Block, Blumenfield, Bradford, Brownley, Buchanan,
Caballero, Carter, Chesbro, Cook, Coto, Davis, De La
Torre, De Leon, Eng, Evans, Feuer, Fletcher, Fong,
Fuentes, Galgiani, Garrick, Gatto, Hall, Hayashi,
Hernandez, Hill, Huber, Huffman, Jones, Lieu, Bonnie
Lowenthal, Ma, Mendoza, Monning, Nava, Nestande, V.
Manuel Perez, Portantino, Ruskin, Salas, Saldana,
Skinner, Solorio, Swanson, Torlakson, Torres, Yamada,
John A. Perez
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NOES: Anderson, Bill Berryhill, Blakeslee, Conway, DeVore,
Fuller, Gaines, Gilmore, Hagman, Harkey, Jeffries,
Knight, Logue, Niello, Nielsen, Norby, Silva, Smyth,
Audra Strickland, Villines
NO VOTE RECORDED: Adams, Charles Calderon, Furutani,
Miller, Torrico, Tran, Vacancy
CPM:cm 10/5/10 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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